KAPUR T C Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question referred to us under sub -section (1) of section 66 of the Income -tax Act is : 'Whether on the facts and in the circumstances of the case the sum of Rs. 52,000 is income liable to be taxed in the hands of the assessee ?'

(2.) THE assessee jointed the service of the Bombay Mutual Life Assurance Society Limited as a manager, on April 1, 1944, and the terms of service were reduced to the form of a document of date April 6, 1944. The terms, inter alia, were :

(3.) THIS letter of the assessee was acknowledged by the chairman of the employer company under his letter of 6th June, 1952, noting the assessee's resignation therein. In its meeting held on the 18th June, 1952, the board of directors passed the following resolution : 'In continuation of resolution No. 19 dated 4th June, 1952, noting the termination of his employment by the manager, resolved that :